Missing Postwatch already?

Last week, the House of Lords published a Select Committee report on the UK economic regulators including Postcomm. In Chapter 5 of the report, there is a section entitled "How are consumer interests protected in the regulatory state?"

This looks at models of consumer representation and comparisons are made between the integrated model of the Ofcom Consumer Panel and the Financial Services Consumer Panel - where the consumer body sits in the regulator - and the alternative standalone model of Postwatch and Energywatch - where the consumer body sits outside the regulator.

The report concludes that:

- "Different consumer representation models operate in the regulatory state and all the regulators were vociferous in justifying their particular model. However, we believe that stand alone consumer representation bodies are more transparent and more effective."

- "The new landscape for consumer representation has been created by the Consumers, Estate Agents and Redress Act 2007 [Consumer Voice]. We are sceptical that the proposed new arrangements will lead to improvements in consumer representation but we recognise that it is too early to judge whether our scepticism is justified. The new arrangements will need careful monitoring and this is a role that might be taken up by a sessional Committee on regulators."

This is a reference to the fact that the CEAR Act will combine both Postwatch and Energywatch with the National Consumer Council so that, from October 2008, there will not be a sector-specific consumer body for postal services.

Another 14 months for Postwatch

Ministers at the Department for Business, Enterprise & Regulatory Reform (BERR) have today agreed a date for establishing the new National Consumer Council which will bring together Postwatch, Energywatch and the current NCC. The Secretary of State, John Hutton, approved the recommendation from the Consumer Minister, Gareth Thomas that the new body will be in place with effect from 1st October 2008.

Ministers believe that an October date will ensure the success of the merger and go the furthest towards achieving the merger objectives and providing a better deal for consumers, envisaged by the Consumer, Estate Agents and Redress Act.

The key issues which led Ministers to decide an October start-up date are:

• Consumer Direct are key to the new consumer experience on Energy and Postal complaints, and they will not be in a position to take those calls until October.
• October will allow the new CEO and council to give all staff a fair deal through the transition and ensure the decisions they make on the structure of the new organisation deliver a world class consumer organisation.
• The Post Office Network Restructuring Programme, currently underway with the support of Postwatch, will be almost complete by October thus allowing the new body to have a fresh start in representing consumer interests in the new Post Office network

Building our successor organisation

A new National Consumer Council - which will take over from Postwatch, Energywatch and the current NCC - is being created by legislation called the Consumers, Estate Agents and Redress Act 2007.

The Department for Business, Enterprise and Regulatory Reform (BERR) is seeking:

* up to 9 Council Members for the new National Consumer Council
* a Chair and up to 7 Council Members for the new Scottish Consumer Council;
* a Chair and up to 7 Council Members for the new Welsh Consumer Council

All of these positions are non-executive and part time.

BERR is also seeking a full–time Chief Executive for the new National Consumer Council to set up and the new organisation and lead it.

More information here.

The mouse that roared

Earlier this week, the Consumers, Estate Agents and Redress Bill had its Second Reading in the House of Commons. This is the Bill that will merge Postwatch, Energywatch and the National Consumer Council into a single body to be called the new National Consumer Council.

In opening the debate, the Minister Ian McCartney stated:

"Some critics of those proposals have raised concerns about loss of expertise and loss of independence. Some have even suggested that the Government are creating this new body in order to silence criticism of Government action, on post offices in particular. Let me say now that our objective in bringing these bodies together is to create not a mouse too meek to challenge us, but a lion who will, I hope, roar on behalf of consumers. We do not want to weaken consumer representation, but to strengthen it. We do not want to lose valued expertise, but to build on it and make sure that all sectors benefit from it. A strong rope is made from intertwining different strands together. That is why we will create the new National Consumer Council."